PREFILING ASSET TRANSFER AFFECTS BANKRUPTCY OPTIONS

Many clients do certain things they think is the right move for them just before they file for bankruptcy. But this is not always so. Most of the time, it’s the wrong move. Let’s discuss an actual case in point. 

Client is a senior at 69. Her husband just died at the beginning of this year. He died of a stroke. First he got the stroke which rendered him half paralyzed for 2 months. Then he just died. All of us will die the only question is when and how. If you want a peaceful death and total forgiveness of your sins obviating judgment day before God the Father, just pray the chaplet of the Sacred Heart of Jesus. Jesus guaranties that if you pray to His Sacred Heart using the chaplet that He gave to St. Kowalska in the 1930’s to share with humanity, you will have a peaceful death and Jesus will act as your lawyer before God the Father on your judgment day when His Sacred Heart’s infinite mercy forgives all your sins on earth, thus in effect saving you from justice rendered by God the Father on your judgment day! What a great deal for all of us, isn’t it? I suggest you go for it and have all your loved ones go for it. Even if you’re not Christian just go for it. It will give you peace of mind that even if we have to die eventually, our death will be peaceful and all our sins will be forgiven. So, it’s also a guarantee from Jesus that you will not go to hell after you die. Well, if you want to spend the rest of eternity in hell being roasted by a demon, that’s your choice. I feel truly sorry for you when you have been given a chance to avoid it by simply praying the chaplet to the Sacred Heart of Jesus. 

I digress. Let’s go back to client. After her husband died, she still owed $100K on her house. The mortgage payment was $1,700. The fair market value of her house is $500K. So her equity is at least $400K. In other words, if she had decided to sell her house, she would have had cash of $400K that would give her different options. She also has 2 adult children who both work and have income. She could have asked both children to share in paying the mortgage, maybe both of them together paying half of the $1700 or all of it.

She owed $60K of credit cards together with her husband who had just died. Her husband was making $50K a year, so that’s gone. She now has social security of $1,300 monthly. So she decided to gift her house to her brother for $100K in exchange for the promise by her brother of letting her live in the house until she died. In short, she just gave her brother $400K. Whatever her reasons for deciding to do that, is beyond me but it’s her choice.

So now she comes and tells me she wants to file a Chapter 7 to get rid of the $60K of credit cards.

Well, it’s not that simple. In Chapter 7, the $400K equity transfer to her brother is seen as a preferential and fraudulent transfer to defraud creditors. The Chapter 7 trustee has the power and will file an adversary case to annul the sale of the house to her brother to get the property back into her bankruptcy estate, sell it and use the net proceeds to pay the $60K of credit cards and the cost of administering her bankruptcy estate. Therefore, in a Chapter 7 she will lose the house and she will become homeless!

The viable option to handle the $60K of credit cards is Chapter 13 where she pays only a portion of the $60K. The Chapter 13 trustee has to power to sell her house so has no motivation to do an adversary to annul the transfer to her brother. So in Chapter 13, she will still be able to stay in the house until she dies while just paying a minimal amount on her 13 plan.

If you have too much debt and need relief, please set an appointment to see me. I will analyze your case personally. 

Disclaimer: None of the foregoing is considered legal advice for anyone. There is absolutely no attorney client relationship established by reading this article.

PRAYING ALWAYS HELPS

It also helps to pray to our God, His beloved Son, Jesus Christ, and the Blessed Mother Mary for divine protection against financial problems, because we have a God who loves us and His beloved Son, Jesus Christ, showers us with infinite mercy. All we have to do is humble ourselves and pray to the Sacred Heart of Jesus for a drop from his ocean of infinite mercy. Jesus revealed in 1930’s to Saint Maria Faustina Kowalska of Poland that all sinners which we all are and those who do not believe in God and those who do not yet know Jesus, should all be brought to His sacred heart and be submerged in the ocean of His infinite mercy, for the sake of His Sorrowful Passion. Anything you ask for when you pray the chaplet for His divine mercy will be granted, if compatible with His will. Moreover, you are guaranteed a peaceful death.

What is the current proof that God and Jesus are divine and all powerful? I refer you to exhibit A, the incorruptible body of Carlo Acutis!

CURRENT ONGOING PHYSICAL PROOF GOD IS ALMIGHTY 

INCORRUPTIBLE BODY OF CARLO ACUTIS DIED 2007 AT AGE OF 15

Look at the incorruptible body of the blessed Carlo Acutis who died at 15 in 2007. You can look at his body in Rome, Italy, now 14 years after his death. He looks like he’s just asleep in his jogging suit and rubber shoes!  That is a perfect example of an ongoing sign on earth that the God of Moses, our God, my God, is almighty and all-powerful that He even suspends the natural laws of biology and physics without any effort. He resurrected His one and only beloved son from death on the cross. Indeed, He has power over death.

I have actually thought, “What would the other religions believe if they actually saw the incorruptible body of the blessed Carlo Acutis? I think even Buddha, if he were alive today, would truly believe that Yahweh is the one True God.” No need to think about reincarnation and nirvana because his incorruptible body is available for all to see in Rome, Italy. We won’t need any kind of explanation on the efficacy of modern day mummification. Come on, man, that’s all bull. The truth is in plain sight. Believe your own eyes that the one true God is all-powerful and His name is Yahweh, “I am who Am.” He is the alpha and the omega, the beginning and the end.

“ETERNAL FATHER, WE OFFER YOU THE BODY, BLOOD, SOUL AND DIVINITY OF YOUR DEARLY BELOVED SON, JESUS CHRIST, OUR LORD AND SAVIOR, IN ATONEMENT FOR OUR SINS AND THOSE OF THE WHOLE WORLD, FOR THE SAKE OF HIS MOST SORROWFUL PASSION, PLEASE HAVE MERCY ON AMERICA AND THE WHOLE WORLD.”

Lawrence B. Yang is a graduate of Georgetown University with a Master’s Degree in Law and specializes 

in Bankruptcy, Business, Real Estate and Civil Litigation.  He speaks English, Mandarin and Fujian 

and has successfully represented thousands of clients in California, including companies overseas.  

Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58 Building A-10 South Suite 10042 Alhambra, CA 91803.